MathStar Announces Second Quarter 2007 Financial Results

by via PRNewswire On Aug 7, 2007

HILLSBORO, Ore., Aug. 7 /PRNewswire-FirstCall/ -- MathStar, Inc. (Nasdaq:
MATH), a fabless semiconductor company specializing in high-performance
programmable logic, today announced results for its second quarter of 2007,
ended June 30, 2007 . Revenues in the second quarter were $120,000, compared
with $10,000 in the same period last year. Net loss per share was $0.19 in the
second quarter of 2007, compared with $0.31 per share in the same quarter a
year ago.

"In the second quarter, we successfully completed a follow-on offering of
25 million shares of common stock, which netted the company $36.5 million,"
said Doug Pihl , president and chief executive officer. "We believe that the
funds raised are sufficient to get us to cash flow breakeven," he said.

The company reported second quarter gross margins of 55 percent.

Research and development expenses decreased $593,000 or 19 percent to $2.6
million, down from the $3.2 million reported in the same quarter a year ago.
The decrease was a result of reductions in engineering material, lower design
tools costs, lower contracted services and lower administrative costs. The
decrease was partially offset by the increase in employee related expenses.

For the quarter ended June 30, 2007 , selling, general and administrative
expenses decreased $241,000 or 10 percent to $2.1 million, compared with $2.3
million in the same period a year ago. The decrease was a result of lower
non-cash charges related to restricted stock issued in earlier periods offset
by increased employee recurring charges.

The company will present a full business update during a conference call
today, Tuesday, Aug. 7 , at 1:30 p.m. PDT . To listen to the call, please dial
(303) 262-2075 or (800) 218-0713 (toll free). A replay of the call will be
available on the company's website at http://www.mathstar.com.

About MathStar, Inc.

MathStar is a fabless semiconductor company offering best-in-class, high
performance programmable logic solutions. MathStar's Field Programmable Object
Array (FPOA) can process arithmetic and logic operations at clock rates at 1
gigahertz, which is up to four times faster than even the most advanced FPGA
architectures in many applications. MathStar's Arrix family of FPOAs are high-
performance programmable solutions that enable customers in the machine
vision, high-performance video, medical imaging, security & surveillance and
military markets to rapidly and cost effectively innovate and differentiate
their products. FPOAs are available now and are supported by development
tools, IP libraries, application notes and technical documentation. For more
information, please visit www.mathstar.com.

Statements in this press release, other than historical information, may
be "forward-looking" in nature within the meaning of Section 21E the Private
Securities Litigation Reform Act of 1995 and are subject to various risks,
uncertainties and assumptions. These statements are based on management's
current expectations, estimates and projections about MathStar and its
industry and include, but are not limited to, those set forth in the section
of MathStar's Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 14, 2007 under the heading "Risk Factors."
MathStar undertakes no obligation to update any forward-looking statements in
order to reflect events or circumstances that may arise after the date of this
release.